GCCs (Global Capability Centers) are no longer just a trend—they’re a strategic lever for global enterprises. Yet, over 30% of GCCs underperform or quietly shut down within 3–5 years of setup.
Why?
It’s not due to lack of talent or infrastructure. It’s because companies keep repeating a handful of strategic, operational, and cultural mistakes—costing time, money, and credibility.
At Employnova, we’ve studied the patterns behind failed GCCs, and more importantly, we’ve built frameworks to avoid them. This blog outlines the 7 most common reasons GCCs fail—and how our GCC-as-a-Service model turns each one into a success driver.
Mistake 1: Treating GCCs Purely as Cost Centers
The Problem:
Too many companies set up GCCs with a singular goal: cost arbitrage. Over time, this creates a culture of transactional delivery, poor morale, and talent churn.
Employnova’s Fix:
We position GCCs as value centers—aligned to business outcomes, innovation KPIs, and strategic goals. We implement OKRs that go beyond cost and include delivery velocity, customer impact, and IP creation.
Result: GCCs become growth levers, not just cheaper labor.
Mistake 2: No Clear Vision or Operating Model
The Problem:
Lack of clarity on the GCC’s role—Support vs. Innovation? Delivery vs. Product Ownership?—leads to confusion, internal resistance, and stalled progress.
Employnova’s Fix:
We define a purpose-built GCC blueprint from Day 1—aligned to business strategy, with a clear charter, engagement model, and value realization plan. Our phased maturity roadmap ensures the GCC evolves sustainably.
Result: Everyone knows what the GCC stands for, and what success looks like.
Mistake 3: Underinvesting in Leadership
The Problem:
Companies often delay hiring strong local leaders, assuming global leadership can manage remotely. This results in poor stakeholder management, lack of escalation, and inconsistent execution.
Employnova’s Fix:
We help onboard experienced GCC leaders early—delivery heads, Agile coaches, product owners, and HR business partners—who have scaled similar centers. We also enable succession planning for future readiness.
Result: Strong local leadership drives accountability and culture from Day 1.
Mistake 4: Ignoring Local Culture and Autonomy
The Problem:
Running the GCC like a “remote branch office” kills initiative and agility. Lack of local autonomy leads to slow decisions, high attrition, and disengagement.
Employnova’s Fix:
We establish empowered team structures with local decision-making rights. GCC teams are enabled to own outcomes, not just tasks. We also ensure cultural onboarding for global leaders to work effectively across geographies.
Result: High ownership, faster delivery, and a strong internal brand.
Mistake 5: Lack of Integration with Global Teams
The Problem:
If GCC teams work in silos, innovation, alignment, and delivery quality suffer. They become “order takers” instead of collaborators.
Employnova’s Fix:
We create tight integration models—with shared OKRs, common Agile boards, regular syncs, and reverse rotations. GCC staff regularly interact with HQ on design, roadmap, and feedback loops.
Result: Global alignment, smoother delivery, and better trust.
Mistake 6: Skipping Change Management
The Problem:
Global functions often see the GCC as a threat—fearing job displacement or loss of control. This leads to active or passive resistance, making the transition painful.
Employnova’s Fix:
We lead with transparent stakeholder communication, change champions, and detailed transition plans. We involve global teams early to build trust and shared ownership.
Result: Less friction, more collaboration, and faster adoption.
Mistake 7: No Exit or Evolution Strategy
The Problem:
Many companies don’t plan for what comes next—BOT transfer, new capabilities, or regional expansion. This leads to stagnation or unsustainable models.
Employnova’s Fix:
From Day 1, we build in flexible scaling and exit strategies—whether it’s transitioning from our managed model to your own entity, or expanding into other functions, domains, or geographies.
Result: GCCs that are future-ready and built for continuous evolution.
Employnova Helps You Avoid GCC Pitfalls by Design
We offer more than infrastructure and recruitment. Our GCC-as-a-Service model is a full-stack offering:
- Vision-to-execution setup
- Maturity roadmaps and performance dashboards
- Embedded leadership and governance
- Culture integration and stakeholder onboarding
- Seamless transition and BOT readiness
- Innovation + delivery balance from Day 1
Conclusion: GCC Success is Not Accidental. It’s Engineered.
You can’t “copy-paste” a GCC playbook and expect results. Every enterprise has unique goals, structures, and challenges.
That’s why Employnova designs customized GCC blueprints that are lean, compliant, and built to scale—avoiding the costly mistakes others make.
If your organization is exploring GCCs—or trying to fix a broken one—talk to us.
Because in today’s global economy, a well-executed GCC isn’t just a support function.
It’s a strategic advantage.